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| Author: | Cohen, M.A. (et al.) |
| Title: | Measuring imputed cost in the semiconductor equipment supply chain |
| Journal: | Management Science
2003 : DEC, VOL. 49:12, p. 1653-1670 |
| Index terms: | Semiconductor industry Supply chain management |
| Freeterms: | Imputed cost |
| Language: | eng |
| Abstract: | The order-fulfillment process of a supplier producing a customized capital good, such as production equipment, commercial aircraft or medical devices, is considered in this article. A is common in these industries, prior to receiving a company purchase order from the customer, the supplier receives a series of shared forecasts, which are called "short orders". Facing a stochastic internal manufacturing lead time, the supplier must decide at what time to begin the fulfillment of the order. This decision requires a trade-off between starting too early, leading to potential holding or cancellation costs, and starting too late, leading to potential delay costs. |
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